The supermarket giant says the policy will allow customers to leave loved ones a guarantee tax-free cash lump sum.
Customers buying the plan before June 26 will receive a free £20 gift card.
Those aged between 50 and 75 will not have to have a medical and can apply for cover online or over the phone. They will stop paying when they reach 90 but their cover will continue until death.
Tesco Life Insurance head Jeremy Sutton says: “Increasingly, people are living longer than in previous generations. Customers have been telling us that they want a product that meets their needs for leaving something for their loved ones. We are confident that our prices are the best value cover in the market.”